N-Q 1 d23444dnq.htm GABELLI GLOBAL SMALL & MID CAP VALUE TRUST Gabelli Global Small & Mid Cap Value Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-22884        

                    The Gabelli Global Small and Mid Cap Value Trust                        

(Exact name of registrant as specified in charter)

One Corporate Center

                                  Rye, New York 10580-1422                                 

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                         Rye, New York 10580-1422                        

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: September 30, 2016

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.


The Gabelli Global Small and Mid Cap Value Trust

Third Quarter Report — September 30, 2016

(Y)our Portfolio Management Team

 

 

LOGO

Mario J. Gabelli, CFA      Christopher J. Marangi         Kevin V. Dreyer                     Jeffrey J. Jonas, CFA

To Our Shareholders,

For the quarter ended September 30, 2016, the net asset value (“NAV”) total return of The Gabelli Global Small and Mid Cap Value Trust (the “Fund”) was 3.6%, compared with a total return of 6.6% for the Morgan Stanley Capital International (“MSCI”) World SMID Cap Index. The total return for the Fund’s publicly traded shares was 3.5%. The Fund’s NAV per share was $12.78, while the price of the publicly traded shares closed at $10.80 on the NYSE. See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2016

Comparative Results

 

Average Annual Returns through September 30, 2016 (a) (Unaudited)                  Since  
     Quarter       1 Year       Inception
 (06/23/14) 
 

Gabelli Global Small and Mid Cap Value Trust

        

NAV Total Return (b)

     3.57%         9.42%         2.80%    

Investment Total Return (c)

     3.55            8.87            (4.52)      

MSCI World SMID Cap Index

     6.59            13.06            2.07(d)   
  (a)

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The MSCI World SMID Cap Index captures mid and small cap representation across 23 developed markets. Dividends are considered reinvested. You cannot invest directly in an index.

 
  (b)

Total returns reflect changes in the NAV per share. Since inception return is based on an initial NAV of $12.00.

 
  (c)

Total returns reflect changes in closing market values on the NYSE. Since inception return is based on an initial offering price of $12.00.

 
  (d)

From June 30, 2014, the date closest to the Fund’s inception for which data is available.

 

 


The Gabelli Global Small and Mid Cap Value Trust

Schedule of Investments — September 30, 2016 (Unaudited)

 

 

Shares

         

Market

Value

 
  

COMMON STOCKS — 75.8%

  
  

Aerospace — 1.7%

  
  10,000      

Aerojet Rocketdyne Holdings Inc.†

   $     175,800   
  113,000      

BBA Aviation plc

     366,014   
  16,500      

Kaman Corp.

     724,680   
  3,000      

Meggitt plc

     17,537   
  100,000      

Rolls-Royce Holdings plc

     933,223   
     

 

 

 
        2,217,254   
     

 

 

 
  

Automotive — 1.4%

  
  5,000      

Ferrari NV

     259,350   
  70,000      

Navistar International Corp.†

     1,602,300   
     

 

 

 
        1,861,650   
     

 

 

 
  

Automotive: Parts and Accessories — 2.4%

  

  10,000      

Brembo SpA

     596,502   
  87,000      

Dana Inc.

     1,356,330   
  50,000      

Federal-Mogul Holdings Corp.†

     480,500   
  13,000      

Modine Manufacturing Co.†

     154,180   
  8,700      

Visteon Corp.

     623,442   
     

 

 

 
        3,210,954   
     

 

 

 
  

Aviation: Parts and Services — 0.9%

  
  12,900      

B/E Aerospace Inc.

     666,414   
  1,000      

Curtiss-Wright Corp.

     91,110   
  13,000      

KLX Inc.†

     457,600   
     

 

 

 
        1,215,124   
     

 

 

 
  

Broadcasting — 0.5%

  
  9,000      

Beasley Broadcast Group Inc., Cl. A

     48,870   
  8,000      

Discovery Communications Inc., Cl. A†

     215,360   
  6,000      

Entravision Communications Corp., Cl. A

     45,780   
  35,000      

ITV plc

     84,923   
  500      

Liberty Broadband Corp., Cl. A†

     35,080   
  1,603      

Liberty Broadband Corp., Cl. C†

     114,582   
  43,000      

Sirius XM Canada Holdings Inc.

     156,012   
     

 

 

 
        700,607   
     

 

 

 
  

Building and Construction — 1.4%

  
  32,000      

Hertz Global Holdings Inc.†

     1,285,120   
  10,505      

Johnson Controls International plc

     488,798   
     

 

 

 
        1,773,918   
     

 

 

 
  

Business Services — 3.8%

  
  3,000      

Aggreko plc

     37,076   
  3,000      

Aramark

     114,090   
  4,000      

Ascent Capital Group Inc., Cl. A†

     92,680   
  3,000      

Core-Mark Holding Co. Inc.

     107,400   
  28,000      

Diebold Inc.

     694,120   
  15,000      

Fly Leasing Ltd., ADR

     173,850   
  23,000      

Havas SA

     194,399   
  33,001      

Herc Holdings Inc.†

     1,112,134   
  2,300      

Iron Mountain Inc.

     86,255   
  20,714      

JC Decaux SA

     669,687   

Shares

         

Market

Value

 
  13,000      

Loomis AB, Cl. B

   $     401,571   
  9,100      

Macquarie Infrastructure Corp.

     757,484   
  4,000      

Ströeer SE & Co KGaA

     173,806   
  4,000      

The Brink’s Co.

     148,320   
  12,000      

The Interpublic Group of Companies Inc.

     268,200   
     

 

 

 
        5,031,072   
     

 

 

 
  

Cable and Satellite — 3.2%

  
  6,000      

Altice NV, Cl. B†

     108,044   
  2,000      

AMC Networks Inc., Cl. A†

     103,720   
  650      

Cable One Inc.

     379,600   
  4,000      

Cogeco Communications Inc.

     197,447   
  17,750      

Liberty Global plc, Cl. A†

     606,695   
  47,682      

Liberty Global plc, Cl. C†

     1,575,413   
  6,662      

Liberty Global plc LiLAC, Cl. A†

     183,805   
  17,750      

Liberty Global plc LiLAC, Cl. C†

     497,887   
  44,000      

Sky plc

     509,851   
  7,000      

Videocon d2h Ltd., ADR†

     68,460   
     

 

 

 
        4,230,922   
     

 

 

 
  

Closed-End Business Development Company — 0.1%

  

  13,000      

MVC Capital Inc.

     107,770   
     

 

 

 
  

Computer Hardware — 0.1%

  
  3,000      

Brocade Communications Systems Inc.

     27,690   
  1,000      

Wincor Nixdorf AG†

     74,748   
     

 

 

 
        102,438   
     

 

 

 
  

Computer Software and Services — 5.4%

  

  16,000      

Blucora Inc.†

     179,200   
  14,000      

Carbonite Inc.†

     215,040   
  780      

Dell Technologies, Inc. - VMware Inc., Cl. V†

     37,294   
  10,000      

EarthLink Holdings Corp.

     62,000   
  100,000      

Fleetmatics Group plc†

     5,998,000   
  38,000      

Global Sources Ltd.†

     322,240   
  24,000      

Internap Corp.†

     39,600   
  3,000      

InterXion Holding NV†

     108,660   
  4,000      

Rocket Internet SE†

     85,959   
     

 

 

 
        7,047,993   
     

 

 

 
  

Consumer Discretionary — 0.3%

  
  6,000      

Kameda Seika Co. Ltd.

     333,120   
     

 

 

 
  

Consumer Products — 3.2%

  
  2,400      

Church & Dwight Co. Inc.

     115,008   
  4,000      

Coty Inc., Cl. A.

     94,000   
  200      

dorma+kaba Holding AG, Cl. B

     148,018   
  11,500      

Edgewell Personal Care Co.†

     914,480   
  6,400      

Energizer Holdings Inc.

     319,744   
  21,100      

Hunter Douglas NV

     1,167,837   
  300      

L’Oreal SA

     56,651   
  24,000      

Marine Products Corp.

     215,280   
  600      

Nintendo Co. Ltd., ADR

     19,788   
  1,500      

Salvatore Ferragamo SpA

     38,082   
 

 

See accompanying notes to schedule of investments.

 

2


The Gabelli Global Small and Mid Cap Value Trust

Schedule of Investments (Continued) — September 30, 2016 (Unaudited)

 

 

Shares

         

Market

Value

 
  

COMMON STOCKS (Continued)

  
  

Consumer Products (Continued)

  
  11,000      

Scandinavian Tobacco Group A/S

   $     187,541   
  6,000      

Shiseido Co. Ltd.

     157,655   
  21,000      

Swedish Match AB

     770,597   
     

 

 

 
        4,204,681   
     

 

 

 
  

Consumer Services — 0.2%

  
  3,000      

Allegion plc

     206,730   
  6,000      

Ashtead Group plc

     98,844   
     

 

 

 
        305,574   
     

 

 

 
  

Diversified Industrial — 2.1%

  
  15,508      

Ampco-Pittsburgh Corp.

     171,984   
  1,500      

Crane Co.

     94,515   
  5,000      

EnPro Industries Inc.

     284,100   
  10,000      

Griffon Corp.

     170,100   
  3,000      

Haynes International Inc.

     111,330   
  1,300      

K2M Group Holdings Inc.†

     23,114   
  22,000      

Myers Industries Inc.

     285,780   
  5,500      

Raven Industries Inc.

     126,665   
  5,000      

Smiths Group plc

     94,878   
  4,700      

Sulzer AG

     491,529   
  36,000      

Toray Industries Inc.

     347,557   
  10,000      

Tredegar Corp.

     185,900   
  7,000      

Wartsila OYJ Abp

     315,090   
     

 

 

 
        2,702,542   
     

 

 

 
  

Educational Services — 0.0%

  
  4,000      

Universal Technical Institute Inc.

     7,120   
     

 

 

 
  

Electronics — 1.6%

  
  3,000      

Agilent Technologies Inc.

     141,270   
  7,000      

Datalogic SpA

     149,406   
  1,000      

Dolby Laboratories Inc., Cl. A

     54,290   
  44,000      

Sony Corp., ADR

     1,461,240   
  10,000      

Sparton Corp.†

     262,600   
     

 

 

 
        2,068,806   
     

 

 

 
  

Energy and Utilities: Electric — 0.6%

  
  31,200      

Algonquin Power & Utilities Corp.

     279,431   
  5,500      

El Paso Electric Co.

     257,235   
  7,500      

Fortis Inc.

     241,187   
     

 

 

 
        777,853   
     

 

 

 
  

Energy and Utilities: Integrated — 0.5%

  
  15,000      

Hawaiian Electric Industries Inc.

     447,750   
  85,000      

Hera SpA

     228,974   
     

 

 

 
        676,724   
     

 

 

 
  

Energy and Utilities: Natural Gas — 0.8%

  
  8,000      

National Fuel Gas Co.

     432,560   
  1,200      

Southwest Gas Corp.

     83,832   
  52,000      

Weatherford International plc†

     292,240   

Shares

         

Market

Value

 
  24,000      

Whiting Petroleum Corp.†

   $     209,760   
     

 

 

 
        1,018,392   
     

 

 

 
  

Energy and Utilities: Water — 0.8%

  
  60,600      

Beijing Enterprises Water Group Ltd.

     40,940   
  1,400      

Consolidated Water Co. Ltd.

     16,268   
  13,000      

Mueller Water Products Inc., Cl. A

     163,150   
  27,500      

Severn Trent plc

     892,880   
     

 

 

 
        1,113,238   
     

 

 

 
  

Entertainment — 0.5%

  
  6,000      

Liberty Braves Group, Cl. C†

     104,280   
  4,000      

Manchester United plc, Cl. A

     67,520   
  1,400      

The Madison Square Garden Co, Cl. A†

     237,174   
  13,000      

Vivendi SA

     262,135   
     

 

 

 
        671,109   
     

 

 

 
  

Environmental Services — 0.6%

  
  6,000      

Tomra Systems ASA

     69,609   
  9,315      

Waste Connections Inc.

     695,831   
     

 

 

 
        765,440   
     

 

 

 
  

Equipment and Supplies — 1.3%

  
  1,200      

A.O. Smith Corp.

     118,548   
  4,500      

Graco Inc.

     333,000   
  19,000      

Interpump Group SpA

     323,785   
  30,000      

Mueller Industries Inc.

     972,600   
     

 

 

 
        1,747,933   
     

 

 

 
  

Financial Services — 5.3%

  
  350      

Alleghany Corp.†

     183,757   
  580      

Biglari Holdings Inc.†

     252,892   
  1,250      

Credit Acceptance Corp.†

     251,337   
  10,000      

FCB Financial Holdings Inc., Cl. A†

     384,300   
  28,597      

Fifth Street Finance Corp.

     166,148   
  44,000      

FinecoBank Banca Fineco SpA

     254,800   
  32,000      

Flushing Financial Corp.

     759,040   
  93,000      

GAM Holding AG.

     888,358   
  1,000      

Groupe Bruxelles Lambert SA

     88,655   
  39,000      

H&R Block Inc.

     902,850   
  40,500      

Kinnevik AB, Cl. A

     1,126,416   
  55,500      

Kinnevik AB, Cl. B

     1,415,513   
  64,000      

Resona Holdings Inc.

     266,527   
     

 

 

 
        6,940,593   
     

 

 

 
  

Food and Beverage — 14.8%

  
  8,000      

Britvic plc

     62,526   
  280      

Chocoladefabriken Lindt & Sprungli AG

     1,618,322   
  45,000      

Chr. Hansen Holding A/S

     2,675,055   
  6,000      

Coca-Cola Amatil Ltd.

     47,069   
  3,000      

Coca-Cola HBC AG

     69,681   
  80,000      

Cott Corp.

     1,140,000   
  147,000      

Davide Campari-Milano SpA

     1,656,287   
  3,000      

Dean Foods Co.

     49,200   
 

 

See accompanying notes to schedule of investments.

 

3


The Gabelli Global Small and Mid Cap Value Trust

Schedule of Investments (Continued) — September 30, 2016 (Unaudited)

 

 

Shares

         

Market

Value

 
  

COMMON STOCKS (Continued)

  
  

Food and Beverage (Continued)

  
  1,000      

Diageo plc, ADR

   $     116,040   
  2,000      

Fevertree Drinks plc

     25,145   
  25,000      

Greencore Group plc

     108,714   
  1,000      

Heineken Holding NV

     80,185   
  4,500      

International Flavors & Fragrances Inc.

     643,365   
  37,000      

ITO EN Ltd.

     1,306,247   
  600      

J & J Snack Foods Corp.

     71,472   
  11,500      

Kerry Group plc, Cl. A

     946,158   
  41,200      

Kikkoman Corp.

     1,308,259   
  132,000      

Maple Leaf Foods Inc.

     3,029,475   
  13,500      

Massimo Zanetti Beverage Group SpA

     108,432   
  135,000      

Parmalat SpA

     357,598   
  11,000      

Post Holdings Inc.†

     848,870   
  550,000      

Premier Foods plc†

     376,043   
  1,400      

Remy Cointreau SA

     119,478   
  1,500      

SABMiller plc

     87,392   
  2,000      

Snyder’s-Lance Inc.

     67,160   
  1,800      

Symrise AG.

     131,898   
  400      

The J.M. Smucker Co.

     54,216   
  15,000      

The WhiteWave Foods Co.†

     816,450   
  9,000      

Treasury Wine Estates Ltd.

     76,045   
  1,000      

TreeHouse Foods Inc.†

     87,190   
  35,000      

Tsingtao Brewery Co. Ltd., Cl. H

     136,275   
  215,000      

Vitasoy International Holdings Ltd.

     433,526   
  17,000      

Yakult Honsha Co. Ltd.

     761,106   
     

 

 

 
        19,414,879   
     

 

 

 
  

Health Care — 6.7%

  
  70,000      

AdCare Health Systems Inc.

     147,000   
  7,000      

Adeptus Health Inc., Cl. A†

     301,350   
  6,000      

Akorn Inc.†

     163,560   
  22,000      

Alere Inc.†.

     951,280   
  3,000      

Amsurg Corp.†

     201,150   
  388      

Becton, Dickinson and Co.

     69,735   
  70,000      

BioScrip Inc.†

     202,300   
  8,000      

Cardiovascular Systems Inc.†

     189,920   
  3,500      

Centene Corp.†

     234,360   
  6,000      

Cepheid†

     316,140   
  2,000      

Charles River Laboratories International Inc.†

     166,680   
  2,000      

Chemed Corp.

     282,140   
  10,000      

Depomed Inc.†

     249,900   
  6,000      

Diplomat Pharmacy Inc.†

     168,060   
  3,000      

Draegerwerk AG & Co. KGaA

     191,622   
  56,000      

Endo International plc†

     1,128,400   
  6,000      

Envision Healthcare Holdings Inc.†

     133,620   
  4,000      

Gerresheimer AG

     339,838   
  1,500      

ICU Medical Inc.†

     189,570   
  35,000      

InfuSystems Holdings Inc.†

     96,950   
  10,000      

Innate Pharma SA†

     123,681   
  10,000      

Integer Holdings Corp.†.

     216,900   
  10,000      

iRadimed Corp.†.

     169,900   

Shares

         

Market

Value

 
  18,000      

Kindred Healthcare Inc.

   $     183,960   
  20,000      

Lantheus Holdings Inc.†

     165,600   
  5,000      

Mallinckrodt plc†

     348,900   
  4,000      

Medivir AB, Cl. B†

     32,522   
  20,000      

NeoGenomics Inc.†

     164,400   
  5,000      

Orthofix International NV†

     213,850   
  1,500      

Patterson Companies Inc.

     68,910   
  7,000      

Quality Systems Inc.

     79,240   
  5,000      

Rhoen Klinikum AG

     151,990   
  8,800      

SurModics Inc.†

     264,792   
  4,000      

Team Health Holdings Inc.†

     130,240   
  4,000      

Tenet Healthcare Corp.†

     90,640   
  1,250      

The Cooper Companies Inc.

     224,075   
  1,500      

Tobira Therapeutics Inc.†

     59,610   
  4,500      

Trinity Biotech plc, ADR†

     59,490   
  1,500      

VCA Inc.†

     104,970   
  10,000      

Vitae Pharmaceuticals Inc.†

     209,200   
  1,000      

Zoetis Inc.

     52,010   
     

 

 

 
        8,838,455   
     

 

 

 
  

Hotels and Gaming — 1.4%

  
  1,819      

International Game Technology plc

     44,347   
  856,250      

Mandarin Oriental International Ltd.

     1,117,406   
  1,000      

MGM Resorts International†

     26,030   
  8,000      

Ryman Hospitality Properties Inc.

     385,280   
  225,000      

The Hongkong & Shanghai Hotels Ltd.

     223,364   
     

 

 

 
        1,796,427   
     

 

 

 
  

Machinery — 2.2%

  
  3,300      

Astec Industries Inc.

     197,571   
  300      

Bucher Industries AG

     75,069   
  150,000      

CNH Industrial NV

     1,083,000   
  110,000      

CNH Industrial NV

     787,135   
  13,000      

Xylem Inc.

     681,850   
     

 

 

 
        2,824,625   
     

 

 

 
  

Manufactured Housing and Recreational
Vehicles — 0.2%

   

  2,000      

Cavco Industries Inc.†

     198,100   
     

 

 

 
  

Metals and Mining — 0.1%

  
  10,000      

Alcoa Inc.

     101,400   
  2,000      

Allegheny Technologies Inc.

     36,140   
     

 

 

 
        137,540   
     

 

 

 
  

Publishing — 0.6%

  
  1,250      

Graham Holdings Co., Cl. B

     601,713   
  2,000      

Meredith Corp.

     103,980   
  6,000      

News Corp., Cl. B

     85,320   
  3,623      

The E.W. Scripps Co., Cl. A†

     57,606   
     

 

 

 
        848,619   
     

 

 

 
  

Real Estate — 0.1%

  
  3,000      

Forest City Realty Trust Inc., Cl. A

     69,390   
 

 

See accompanying notes to schedule of investments.

 

4


The Gabelli Global Small and Mid Cap Value Trust

Schedule of Investments (Continued) — September 30, 2016 (Unaudited)

 

 

Shares

         

Market

Value

 
  

COMMON STOCKS (Continued)

  
  

Real Estate (Continued)

  
  4,000      

Griffin Industrial Realty Inc.

   $     126,760   
     

 

 

 
        196,150   
     

 

 

 
  

Retail — 3.4%

  
  6,800      

AutoNation Inc.†

     331,228   
  20,000      

Avis Budget Group Inc.†

     684,200   
  39,000      

CST Brands Inc.

     1,875,510   
  1,500      

FTD Companies Inc.†

     30,855   
  2,900      

Groupe Fnac†

     212,795   
  3,000      

Kohl’s Corp.

     131,250   
  7,000      

Macy’s Inc.

     259,350   
  1,200      

Murphy USA Inc.†

     85,632   
  4,000      

Penske Automotive Group Inc.

     192,720   
  25,000      

Rite Aid Corp.†

     192,250   
  2,000      

Sally Beauty Holdings Inc.†

     51,360   
  6,000      

United Natural Foods Inc.†

     240,240   
  8,000      

Whole Foods Market Inc.

     226,800   
     

 

 

 
        4,514,190   
     

 

 

 
  

Semiconductors — 0.3%

  
  20,000      

Intersil Corp., Cl. A

     438,600   
     

 

 

 
  

Specialty Chemicals — 3.6%

  
  6,200      

Ashland Global Holdings Inc.

     718,890   
  44,500      

Chemtura Corp.†

     1,460,045   
  7,000      

H.B. Fuller Co.

     325,290   
  18,000      

Huntsman Corp.

     292,860   
  27,000      

Platform Specialty Products Corp.†

     218,970   
  2,000      

Sensient Technologies Corp.

     151,600   
  8,000      

SGL Carbon SE†

     93,823   
  2,000      

Takasago International Corp.

     53,311   
  13,000      

The Valspar Corp.

     1,378,910   
  1,500      

Valvoline Inc.†

     35,235   
     

 

 

 
        4,728,934   
     

 

 

 
  

Telecommunications — 1.6%

  
  42,000      

Communications Systems Inc.

     199,920   
  20,000      

Gogo Inc.†

     220,800   
  6,000      

Harris Corp.

     549,660   
  6,000      

Hellenic Telecommunications Organization SA, ADR

     26,100   
  8,000      

Loral Space & Communications Inc.†

     312,880   
  100,000      

Pharol SGPS SA

     26,961   
  33,000      

Telekom Austria AG

     186,280   
  18,000      

Vodafone Group plc, ADR

     524,700   
     

 

 

 
        2,047,301   
     

 

 

 
  

Transportation — 0.4%

  
  11,000      

GATX Corp.

     490,050   
     

 

 

 
  

Wireless Communications — 1.7%

  
  41,000      

Millicom International Cellular SA, SDR

     2,126,754   

Shares

         

Market

Value

 
  3,000      

United States Cellular Corp.†

   $ 109,020   
     

 

 

 
        2,235,774   
     

 

 

 
  

TOTAL COMMON STOCKS

     99,542,471   
     

 

 

 
  

PREFERRED STOCKS — 0.5%

  
  

Financial Services — 0.3%

  
  18,200      

The Phoenix Companies Inc., 7.450%

     353,763   
     

 

 

 
  

Health Care — 0.2%

  
  15,000      

AdCare Health Systems Inc., 10.875%, Ser. A

     326,700   
     

 

 

 
  

TOTAL PREFERRED STOCKS.

     680,463   
     

 

 

 
  

RIGHTS — 0.0%

  
  

Health Care — 0.0%

  
  12,000      

Dyax Corp., CVR†

     13,320   
     

 

 

 

Principal

Amount

             
  

U.S. GOVERNMENT OBLIGATIONS — 23.7%

  

  $31,077,000      

U.S. Treasury Bills,
0.129% to 0.541%††,
10/27/16 to 03/30/17

       31,048,628   
  

TOTAL INVESTMENTS — 100.0%
(Cost $126,041,230)

   $ 131,284,882   
  

Aggregate tax cost

   $ 126,804,680   
  

Gross unrealized appreciation

   $ 11,664,000   
  

Gross unrealized depreciation

       (7,183,798
  

Net unrealized appreciation/depreciation

   $     4,480,202   

 

 

 

  
  

Non-income producing security.

††   

Represents annualized yield at date of purchase.

ADR   

American Depositary Receipt

CVR   

Contingent Value Right

SDR   

Swedish Depositary Receipt

 

Geographic Diversification

  

% of Total

Investments

    

Market

Value

 

United States

     58.6%        $   76,950,999   

Europe

     29.3             38,475,040   

Japan

     4.6             6,014,811   

Canada

     4.4             5,739,382   

Latin America

     2.4             3,119,911   

Asia/Pacific

     0.7             984,739   
  

 

 

    

 

 

 

Total Investments

     100.0%        $ 131,284,882   
  

 

 

    

 

 

 
 

 

See accompanying notes to schedule of investments.

 

5


The Gabelli Global Small and Mid Cap Value Trust

Notes to Schedule of Investments (Unaudited)

 

As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its schedule of investments.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

 

   

Level 1  —  quoted prices in active markets for identical securities;

 

   

Level 2  —  other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

 

   

Level 3  —  significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

6


The Gabelli Global Small and Mid Cap Value Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of September 30, 2016 is as follows:

 

     Valuation Inputs         
     Level 1
Quoted Prices
     Level 2 Other Significant
Observable Inputs
     Level 3 Significant
Unobservable Inputs
     Total Market Value
at 9/30/16
 

INVESTMENTS IN SECURITIES:

           

ASSETS (Market Value):

           

Common Stocks(a)

     $  99,542,471                         —                  —         $  99,542,471   

Preferred Stocks (a)

            680,463                         —                  —                  680,463   

Rights (a)

                     —                         —         $13,320                    13,320   

U.S. Government Obligations

                     —         $31,048,628                  —             31,048,628   

 

 

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $100,222,934         $31,048,628         $13,320         $131,284,882   

 

 

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of achieving additional return or of hedging the value of the Fund’s portfolio, increasing the income of the Fund, hedging or protecting its exposure to

 

7


The Gabelli Global Small and Mid Cap Value Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

interest rate movements and movements in the securities markets, managing risks, protecting the value of its portfolio against uncertainty in the level of future currency exchange rates, or hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

 

8


The Gabelli Global Small and Mid Cap Value Trust

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At September 30, 2016, the Fund held no restricted securities.

Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

 

9


THE GABELLI GLOBAL SMALL AND MID CAP VALUE TRUST

One Corporate Center

Rye, NY 10580-1422

 

Portfolio Management Team Biographies

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Chief Executive Officer and Chairman of the Board of Directors of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. Currently he is a Managing Director and Co-Chief Investment Officer for GAMCO Investors, Inc.’s Value team. In addition, he serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA degree with honors from Columbia Business School.

Kevin V. Dreyer joined Gabelli in 2005 as a research analyst covering companies within the consumer sector. Currently he is a Managing Director and Co-Chief Investment Officer for GAMCO Investors, Inc.’s Value team. In addition, he serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Dreyer received a BSE from the University of Pennsylvania and an MBA degree from Columbia Business School.

Jeffrey J. Jonas, CFA, joined Gabelli in 2003 as a research analyst. He focuses on companies in the cardiovascular, healthcare services, and pharmacy benefits management sectors, among others. He also serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Jonas was a Presidential Scholar at Boston College, where he received a BS in Finance and Management Information Systems.

 

 

 

We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

 

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “World Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “World Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XGGZX.”

 

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may from time to time purchase its common shares in the open market when the Fund’s shares are trading at a discount of 7.5% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.

 


THE GABELLI GLOBAL SMALL AND MID CAP VALUE TRUST

One Corporate Center

Rye, NY 10580-1422

t  800-GABELLI (800-422-3554)

f  914-921-5118

e  info@gabelli.com

    GABELLI.COM

 

 

TRUSTEES

 

Mario J. Gabelli, CFA

 

Chairman and

Chief Executive Officer,

GAMCO Investors, Inc.

Chairman and

Chief Executive Officer,

Associated Capital Group Inc.

 

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

 

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

 

Kevin V. Dreyer

Managing Director,

GAMCO Investors, Inc.

 

Frank J. Fahrenkopf, Jr.

Former President &

Chief Executive Officer,

American Gaming Association

 

Kuni Nakamura

President,

Advanced Polymer, Inc.

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

  

 

OFFICERS

 

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary & Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

Wayne C. Pinsent, CFA

Vice President & Ombudsman

 

Camillo Schmidt-Chiari

Assistant Vice President &

Ombudsman

 

INVESTMENT ADVISER

 

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

 

CUSTODIAN

 

State Street Bank and Trust Company

 

COUNSEL

 

Skadden, Arps, Slate, Meagher & Flom LLP

 

TRANSFER AGENT AND REGISTRAR

 

Computershare Trust Company, N.A.

 

 

GGZ Q3/2016

LOGO

 

 


Item 2. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

  

    The Gabelli Global Small and Mid Cap Value Trust

By (Signature and Title)*

  

 /s/ Bruce N. Alpert

  

     Bruce N. Alpert, Principal Executive Officer

Date

 

   11/23/2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*

  

 /s/ Bruce N. Alpert

  

     Bruce N. Alpert, Principal Executive Officer

Date

 

   11/23/2016

By (Signature and Title)*

  

 /s/ Agnes Mullady

  

      Agnes Mullady, Principal Financial Officer and Treasurer

Date

 

   11/23/2016

* Print the name and title of each signing officer under his or her signature.